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Energy Resources, Domestic Investment and Economic Growth: Empirical Evidence from Nigeria

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  • SAIBU, Olufemi Muibi

Abstract

The paper examined whether investment serves asa channel through energy could promote economic growth in Nigeria. A model that incorporated energy as a separate input and as an indirect input was developed and estimated. The results showed that the potential of investment to enhance economic growth is significantly depressedbythe energy resources dependence. Although pubic investment was found to be a channel throughwhich energy resources enhanced economic growth in Nigeria. There is evidence that Dutch disease/resource curse problem is a Nigerian phenomenon as energy abundance is found to significantly impair economic growth in Nigeria

Suggested Citation

  • SAIBU, Olufemi Muibi, 2012. "Energy Resources, Domestic Investment and Economic Growth: Empirical Evidence from Nigeria," MPRA Paper 34392, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34392
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    Cited by:

    1. Eregha, Perekunah Bright & Mesagan, Ekundayo Peter, 2017. "Energy consumption, oil price and macroeconomic performance in energy dependent African countries," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 46, pages 74-89.
    2. Bakari, Sayef & Fakraoui, Nissar & Mabrouki, Mohamed, 2020. "The Contribution of Domestic Investment, Exports and Imports on Economic Growth: A Case Study of Peru," MPRA Paper 99041, University Library of Munich, Germany.
    3. Saibu Muibi Olufemi & Mesagan Ekundayo Peter, 2016. "Environmental Quality and Growth Effects of Foreign Direct Investment in Nigeria," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 20(2), pages 125-140, Spring.
    4. Mesagan, Ekundayo, 2015. "Economic Growth and Environment Nexus: The Role of Foreign Direct Investment," MPRA Paper 76722, University Library of Munich, Germany.
    5. Mohammadi, Teymour & Jahangard, Fateme & Khani Hoolari, Seyed Morteza, 2014. "The relationship between reserves of oil endowment and economic growth from the resource curse viewpoint: a case study of oil producing countries," MPRA Paper 56092, University Library of Munich, Germany.
    6. Ajide, Kazeem & Ridwan, Ibrahim, 2018. "Energy consumption, environmental contaminants, and economic growth: The G8 experience," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 51, pages 58-83.

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    More about this item

    Keywords

    Energy resources; Investment Economic Growth; Nigeria;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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